trade deficit

American  

[treyd def-uh-sit] / ˈtreɪd ˌdɛf ə sɪt /

noun

Economics.

1. a negative balance of trade, or the amount by which the value of a country’s imports exceeds that of its exports.

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trade deficit Cultural  

1. The condition that exists when the value of what a country imports exceeds the value of what it exports; also called an unfavorable balance of trade.

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Discover More

Trade deficits, because they imply that capital is leaving a country, can cause higher interest rates.

Etymology

Origin of trade deficit

First recorded in 1855–60

Example Sentences

Treasury yields declined as the November U.S. trade deficit widened more than expected and government officials moved to avoid another shutdown.

From The Wall Street Journal

The logic goes that a weak dollar allows for faster economic growth and smaller trade deficits.

From Barron's

The numbers: The trade deficit fell a few months ago to a 16-year low, but it was fool’s gold.

From MarketWatch

The economics calendar includes weekly jobless claims and the November reading of the trade deficit.

From MarketWatch

In other words, the trade deficit and the world’s demand for Treasurys are two sides of the same coin.

From The Wall Street Journal

Related Words

• balance of trade
• bop
• trade balance